Intrum AB Update on Recapitalisation Process Webinar Hosted by Nordea Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Rickard Hellman - Nordea Bank Abp - Analyst : Sure. And thank you, AndrTs for the presentation. And a reminder, if you would like to ask any questions, please use the question functions in the system and I will address the questions as well. There's been a lot of questions around the process and especially about the choice of Chapter 11. Could you start just giving a little bit of rationale behind your choice? Why did you go that route?

Question: Rickard Hellman - Nordea Bank Abp - Analyst : And that's where you are now.

Question: Rickard Hellman - Nordea Bank Abp - Analyst : Yeah. And hence I mean as you've been very clear about that the Swedish process must be successful for your case in these circumstances to move forward.

Question: Rickard Hellman - Nordea Bank Abp - Analyst : But I guess there are ways for this process to be delayed and there's also ways of trying to not also stop the process in that sense just I mean could it start with the delays, could it be delayed in any way? Not just a week or something, but perhaps stretching?

Question: Rickard Hellman - Nordea Bank Abp - Analyst : I mean after the summer? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 22, 2025 / 2:30PM, NDAFI.HE - Intrum AB Update on Recapitalisation Process Webinar Hosted by Nordea

Question: Rickard Hellman - Nordea Bank Abp - Analyst : And it doesn't mean to start over from the beginning or?

Question: Rickard Hellman - Nordea Bank Abp - Analyst : But at least back a little bit to the table in order to?

Question: Rickard Hellman - Nordea Bank Abp - Analyst : One thing that I mean there's been a lot of different numbers for the support from bond and I think you efficiently show, the reason why the support jumped from 73% to suddenly 82%. I mean more of the numbers of actually voting but also the constant for amendments of the terms in the TN bonds were not fully successful in all tranches.

Question: Rickard Hellman - Nordea Bank Abp - Analyst : But you are able -- even though you have do not have the changed amendment in the tranche to move forward.

Question: Rickard Hellman - Nordea Bank Abp - Analyst : And I mean this has been at least from my point of view, a complicated process in that sense. And we do get a lot of questions about the costs for this and you mentioned a little bit about the legal costs that also charge from your side for your counterparties. Can you give any estimates of what this will cost and how much has been charged or will be charged?

Question: Rickard Hellman - Nordea Bank Abp - Analyst : I guess I know the answer on this question, but I will ask it anyway because I do receive a lot of questions around. I mean wouldn't it just be easier to settle with the '25 bondholders? I mean instead of putting this amount of money on legal fees or whatever?

Question: Rickard Hellman - Nordea Bank Abp - Analyst : And with that said, also I mean this short term, I think you put it pretty good but what is expected by bondholders now in the process? Because there are also been a lot of questions around a little bit in a complicated process for bondholders.

Question: Rickard Hellman - Nordea Bank Abp - Analyst : And in that sense, perhaps also would serve a little bit of a technical question. What will happen with the bonds to start with? I mean you are not paying coupons today on your bonds for I mean the process reasons, of course, when will that be settled and how will those accrued interest be be settled?

Question: Rickard Hellman - Nordea Bank Abp - Analyst : And then you will also launch the new bonds.

Question: Rickard Hellman - Nordea Bank Abp - Analyst : And that will be based on the nominal amount of the ownership of the bonds.

Question: Rickard Hellman - Nordea Bank Abp - Analyst : Sorry, the share distribution.

Question: Rickard Hellman - Nordea Bank Abp - Analyst : Super great. I think if we perhaps move a little bit further, assuming that we are some sometime in early Q2 and we have successfully been able to go through this process. Could you just perhaps share? And I know it might be repetitive for some division for interim in three to five years.

Question: Rickard Hellman - Nordea Bank Abp - Analyst : Yeah. And I mean I do agree on the potential but, but of course, I mean we could discuss lengthly about what you should have a separate session that. The A session. Yes. But I mean from that point of view, I assume that margins will be a must win for your wish for the servicing business.

Question: Rickard Hellman - Nordea Bank Abp - Analyst : Because that's also with your plan when you presented this lock up agreement, you had a little bit of a plan where you thought where you would be. I mean also driving the deleveraging down to 3.5 which will not be in a straight line. But besides the modern development, would you say that you generally are on track?

Question: Rickard Hellman - Nordea Bank Abp - Analyst : But that also entails that you -- I mean after this restructuring, you will end up in a situation with higher interest paid or higher funding cost, at least not necessarily on an absolute level. But is the plan then try to refinance this product as soon as possible?

Question: Rickard Hellman - Nordea Bank Abp - Analyst : Yeah. And I guess what one key to that is also the rating agency, I mean bringing them back to. So do you have a target for your public rating?

Question: Rickard Hellman - Nordea Bank Abp - Analyst : And I guess the technical reason for the downgrade will also be on the at some point when you take some time. But yes, that is correct then. Of course you have the operational, but that's not correct. Yeah, with this, what I could call recapitalization process. How has that affected your capacity -- operational capacity? I mean to start with, I guess you and also management have been quite busy with this.

Question: Rickard Hellman - Nordea Bank Abp - Analyst : And then I guess it's the same also you with your financing partner sets that it's the same camp.

Question: Rickard Hellman - Nordea Bank Abp - Analyst : Looking forward to that one. And I know that you can't answer that much about, short term operational since you're in a period. So we need to skip some of your questions unfortunately, but I promise everyone that I will send them to AndrTs as well so that he will be able to address them next week.

Question: Rickard Hellman - Nordea Bank Abp - Analyst : Yeah, one question is also about I mean looking at the 10% debt write down and then also adding, a significant amount of legal fees will the end result actually be a deleveraging out of this?

Question: Rickard Hellman - Nordea Bank Abp - Analyst : Again, if you would like to ask a question, use the question function in the platform and I will read it out. I think we have spent a lot of time on bond and on that process, I mean, you mentioned a little bit about the RSF lenders. Can you say anything about that group? How is your dialogue with them? Have there been any changes to that group?

Question: Rickard Hellman - Nordea Bank Abp - Analyst : Yeah. I also have one question around. There's been some media speculations about secret solvency reports. Could you comment on that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 22, 2025 / 2:30PM, NDAFI.HE - Intrum AB Update on Recapitalisation Process Webinar Hosted by Nordea

Question: Rickard Hellman - Nordea Bank Abp - Analyst : I think we will end. There are some questions about if you could just summarize. I'll address it a little bit, summarize very briefly. What's the next steps again and also address what concerns you may have for the risks in this process?

Question: Rickard Hellman - Nordea Bank Abp - Analyst : One question, that has been quite active over the past and this is a little bit around the deal that you struck with bondholders or still doing. But some investors, especially bond holders feel that the equity holders got off the hook quite easily. And I mean could you mention around the discussion with bondholders, how you achieve that? Because I hear from investors that, well, if we are to do any write down on bonds, we need to wipe the full equity.

Question: Rickard Hellman - Nordea Bank Abp - Analyst : A final question, please. I guess it isn't that often. You do a Chapter 11 during your career or a restructuring for that sake of this size is there? I mean, at least, partly in hindsight. Now is there anything that you feel that you could have done differently in this process?

Question: Rickard Hellman - Nordea Bank Abp - Analyst : Great. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 22, 2025 / 2:30PM, NDAFI.HE - Intrum AB Update on Recapitalisation Process Webinar Hosted by Nordea

Question: Rickard Hellman - Nordea Bank Abp - Analyst : And thank you for joining this webinar. Hopefully, we will hear more as you say and have an end to this process as well.

Question: Rickard Hellman - Nordea Bank Abp - Analyst : Thank you.